Grant Project Implementation Manual

Grant ImplementationManual for Grant Beneficiaries

GRANT IMPLEMENTATION MANUAL FOR GRANT BENEFICIARIES

CFCU-2009

Table of contents

1.INTRODUCTION

1.1Scope

1.2Legal basis

1.3Programme information

1.4Institutional Framework

1.4.1 Bodies Involved

1.4.2Responsibilities of Support Unit from Grant Beneficiaries perspective

2. THE GRANT CONTRACT BETWEEN THE CFCU AND BENEFICIARY

2.1Characteristics and General Principles of the standard grant contract

2.2Major parts of the grant contract

2.3Modifying grant contracts

2.1.1Notifications to Contract: Minor Modifications

2.1.2Addendum: Major Changes

2.1.3Preparing an addendum

2.4Eligible costs

2.4.1Exchange Rates

2.5Project documentation and accountancy

2.5.1Financial documentation

2.5.2Technical documentation

2.5.3Accounting requirements

2.6Reporting requirements

2.6.1Interim and Final Narrative Reports

2.6.2Financial Report

2.6.3Bi-monthly Reports

2.7Payment procedures

3. PROCUREMENT (TENDERING)

3.1Procurement plan and principles of good procurement

3.1.1No discrimination

3.1.2Fair competition

3.1.3Clear specifications

3.1.4Effective publicity (announcement)

3.1.5Adequate timescales

3.1.6Use of relevant objective criteria

3.1.7Adequate records

3.2Basic rules for service, supply, works contracts

3.2.1Overview

3.2.2Eligibility criteria and other essentials

3.2.3Grounds for exclusion

3.2.4Administrative and financial penalties

3.2.5Visibility

3.2.6Other essentials points

3.3Selection criteria

3.3.1General principles

3.3.2Verification of the financial and economic capacities of tenderers or candidates

3.3.3Verification of technical and professional capacities of tenderers, candidates and their managerial staff

3.3.4Award criteria

3.3.5Cancellation of procurement procedures

3.3.6Ethics clauses

3.3.7Appeals

3.4Terms of reference and technical specifications

3.5The Evaluation Committee

3.5.1Composition of the Evaluation Committee

3.5.2Impartiality and confidentiality

3.5.3Responsibilities of the Evaluation Committee members

3.5.4Period of validity

3.6Award of the contract

3.6.1Notifying the successful tenderer

3.6.2Contract preparation and signature

3.6.3Publicising the award of the contract

3.7Modifying contracts

3.7.1General principles

3.7.2Preparing an Addendum for Procurement Contract

4. MONITORING AND SUPPORT ACTIVITIES

4.1Monitoring Framework

4.2Monitoring Tools

4.3Responsibilities of the Grant Beneficiary in Monitoring

4.4Support activities

4.5Manuals

4.6Web-pages

4.7Information and training sessions

CFCU-20091/37

Grant ImplementationManual for Grant Beneficiaries

1.INTRODUCTION

1.1Scope

This Guide explains the contracting and implementation procedures applying to all sub-contracts concluded by Grant Beneficiaries and contractual obligations of the beneficiaries, monitoring framework of implementation of grant projects inTurkey.

The purpose of this manual is to provide all Grant Beneficiaries with all information necessary to undertake a grant procedure from the very first steps to the award of contracts. In other words, this document also provides information on how to manage the grant contract, signed between the CFCU and the Grant Beneficiaries (see Chapter 2), from the award of the contract until the final report and payment.

Further separate guidelines are available for the different procurement procedures for works, services and supplies.

Please note that:

Grant Beneficiaries of the programme are obliged to use procedures and documents complying EU PRAG rules in all procurement procedures (supplies, services and works).

1.2Legal basis

This Guide has been prepared by considering the relevant provisions of the “Practical Guide to contract procedures for EC external actions (EU PRAG), 2007”. The full version of EU PRAG (including relevant annexes to PRAG) can be found on the webpage:

Article 3/c of the Turkish Public Procurement Law (No: 4734) permits to apply other procurement rules for the procurement activities to be realised with foreign financing pursuant to international agreements. Also, the Law (No: 5303) on the Approval of Framework Agreement that Determines the General Framework for the Financial Cooperation between Turkey and the EU states that EU rules will be used in the EU co-funded projects.

1.3Programme information

The overall objective of the Civil Society Dialogue - EU-Turkish Chambers Forum- EU-Turkey Chambers Partnership Grant Scheme(ETCF) will be to strengthen the dialogue and co-operation between the Turkish Chambers and their counterparts in the EU as members of civil society; thus promoting the integration of EU and Turkish business communities. This integration process will be realised through the establishment of long term partnerships between EU and Turkish Chambers of Commerce and Industry with the financial assistance of the National Pre-Accession Financial Assistance Programme 2006 for Turkey, thus facilitating the effective implementation of business-related acquis in Turkey.

The grant scheme proposed under this project aims at addressing the Turkish Chambers’ needs of enhancing the service capacity of the Chambers by benchmarking with their European counterparts and benefiting from their know-how on serving the industry.

The institutional framework of the Grant Scheme includes the Union of Chambers and Commodity Exchanges of Turkey (TOBB) and the Association of European Chambers of Commerce and Industry (EUROCHAMBRES)and the Central Finance and Contracts Unit (CFCU) of the Republic of Turkey. TOBB and EUROCHAMBRESareresponsible for the technical implementation of the ETCF programme and will also co-ordinate the monitoring and evaluation of the grants awarded. The CFCU is the Contracting Authority[1] for the programme, and is responsible for the administrative and financial implementation of the Grant Scheme. The CFCU has the ultimate responsibility for the correct use of Grant funds and is responsible for the tendering, contracting and payments to the Grant Beneficiaries.

Moreover, a Support Unit (hereinafter SU) has been set up by TOBB and EUROCHAMBRES and will be exclusively responsible for the effective implementation of the grant schemes on local level, programme promotion and extension of support to Grant Beneficiaries.

1.4Institutional Framework

1.4.1Bodies Involved

Central Finance and Contracts Unit (CFCU): The Contracting authority for the grant contract with the Grant Beneficiary is the CFCU.

TOBB and EUROCHAMBRES: TOBB and EUROCHAMBRESare the Beneficiary of the Programme and is responsible for the coordination of the technical implementation of the programme and will also co-ordinate the monitoring of the grants programme.

The Delegation of the European Commission to Turkey: The Delegation of the European Commission to Turkey has the responsibility for ex-ante approval of the overall activities under the projects financed by the European Community in the course of co-operation with the Pre-Accession Financial Assistance Programme for Turkey. Activities under the grant projects are not subject to ex-ante approval of the Delegation

Support Unit (SU): SU which the ETCF team within TOBB & EUROCHAMBRES is responsible for the implementation of the programme on a daily basis, provision of coordination with Grant Beneficiaries, information dissemination and publicity of the programme, monitoring of the projects and making on-the-spot checks on the projects.

1.4.2Responsibilitiesof SupportUnitfrom Grant Beneficiaries perspective

Support Unit (SU) is established within TOBB and Eurochambres. It is responsible for introduction of the programme at local level, the organisation of the activities, and monitoring of all the grant projects in the region. SU acts as principal contact point for the Grant Beneficiaries during the implementation of their projects.

2. THE GRANT CONTRACT BETWEEN THE CFCUAND BENEFICIARY

2.1Characteristics and General Principlesof the standard grant contract

The grant contract between your organisation and the CFCU is the main document that defines responsibilities of different parties, reporting, eligibility of costs, accounting, payments, etc.

• The Grant Beneficiary can make transfers between budget items which do not result in a change of more than 15% to any budget heading by notifying CFCU through SU.
• The first pre-financing payment, which covers 80% of the grant amount, is paid within 45 days after both parties have signed the contract and the Contracting Authority has received the documents referred in Item 15.1 of the General Conditions from the beneficiary.
• The Community finances a specific percentage of the total eligible costs rather than a particular part of the action. If at the end of the action, the actual eligible cost is lower than anticipated, the grant will be reduced proportionately.
• In awarding any procurement contracts required for the purposes of the action, the Beneficiary must comply with the rules set out in Annex IV to the contract. Details about the application of these rules are given in Procurement Manuals.
• Beneficiaries must take necessary measures to ensure the visibility of the EU financing or contribution to the financing. Such measures must be in accordance with the applicable rules on the visibility of external actions are set out in the EU visibility guidelines for external actions, available from the following Internet address:

Furthermore, the Grant Beneficiary has to consider during the implementation the following points which are notified to all Grant Beneficiaries via an official letter by the CFCU;

1-One of the parties of the agreement is CFCU and the other party is your Institution. The correspondences and view exchanges with third parties regarding contract implementation will not be binding the CFCU.

2-The procedures and expenditures related to project’s execution will be recorded and filed as hard copies together with relevant documents (invoice, payment etc.) and will be kept in a special file to be inspected when needed.

3-In no way, advance payment can be paid fromthe project budget, without prior approval of the CFCU and bank guarantee.

4-All of the contracts that are related to procurements for carrying out the project will be implemented in accordance with the principles of transparency, confidentiality competition and equal treatment by following the instructions in the manuals prepared for this grant programme.

5-No transfer will be realized from the project account to any other one (apart from parties involved in the project such as project personnel, suppliers, service providers, contractors etc.).

6-From the project budget’s bank account, in no way cash payment will be made, all the payments will be made through transfer from one bank account to another one, except payments up to 600 EUR per month.

7-The regulations related to agreement’s EU visibility rules will be followed very carefully, the EU support in the project will be realized through proper implementation tools (all published documents and audio-visual outputs).

8-All kinds of support will be provided to the CFCU,TOBB and EUROCHAMBRES, European Commission Delegation to Turkey and SU in monitoring and auditing visits.

The documents published in the CFCU web pages for administrative expendituresand human resources have to be applied regarding the expenditures for the related budget headings (see the annexes).

2.2Major parts of the grant contract

The Grant Contract has several sections, which are compulsory and may not be changed without a written agreement with the CFCU.

• The Special Conditions(Grant Contract): It specifies the project duration, total project cost and the grant amount, reporting and payment schedule.
• Annex I of Grant Contract: “Description of the action” contains the description of your project. Signing the contract you commit yourself to implement all activities described in Annex I and to deliver the stated outputs and results.

• Annex II of Grant Contract: “General Conditions” specify the general obligations and financial provisions under the contract. This Annex describes all your obligations on reporting, provision of information, visibility, accounts and technical and financial checks.
• Annex III of Grant Contract: “Budget for the action” includes the breakdown of project costs as well as expected sources of funding.

• Annex IV of Grant Contract: “Contract Award Procedures” describes the procedures that you have to follow in case of awarding contracts for services, supplies and works to external organisations.
• Annex V of Grant Contract: This annex contains standard templates that you have to use when applying to the CFCU for payment request. These documents are Request for Payment and Financial Identification Form.
• Annex VI of Grant Contract: This annex contains standard forms for Interim, Final narratives and Financial Reports.
• Annex VII of Grant Contract: This annex contains Model report of factual findings and terms of reference for an expenditure verification of an EU fundedgrant contract for external actions (Model of Expenditure Verification Report). For Grants exceeding €50.000 it is obligatory to obtain an Independent Audit Reportbefore requesting the final payment.

2.3Modifying grant contracts

Grant Beneficiariesshould try to implement the project as originally planned. Nevertheless situations may arise where there is a need to make some changes in the activities or budget, or replace some experts. In such situations, they will have to apply for an amendment to the contract.

The procedures for amendment ofthe grant contract are divided into two groups depending on the type of change that should be made. Minor changes in the contract may be implemented without receiving a prior agreement of the CFCU, but should be notified. Major modifications in the contract require a formal Addendum to the contract to be signed CFCU and Grant Beneficiary before their implementation.In case of major modifications of the Contract, an Addendum should be prepared before making the change.

The following general principles must always apply:

For the acceptance of a Grant Beneficiary's request for grant contract modifications, the Grant Beneficiary must substantiate its request to the Contracting Authority. The Contracting Authority examines the reasons given, and rejects requests which have little or no substantiation.

The modifications must not have purpose or effect of making such changes to the contract as would alter the objectives of the project or be contrary to the equal treatment of applicants.

Grant contracts can only be modified within the lifetime of the contract, modifications cannot be made retroactively.

The maximum amount of the grant may not be increased.

Any modification extending the performance period of the contract must be such that implementation and final payments can be completed before the expiry of the financing decision. As the case may be the implementation has to be completed before the expiry of the implementation period of the financing agreement, under which the initial grant contract was financed. The implementation period for the programme ends on 30 November 2009.

Requests for contract modifications to grant contracts must allow an adequate time-limit (minimum 30 days) for the addendum to be signed before the modifications are intended to enter into force.

2.1.1Notifications to Contract: Minor Modifications

Minor modifications that require only written notification not a formal Addendum to the CFCU by the Grant Beneficiary include:

Minor changes in activities with no budgetary implications,

Budget modifications that do not affect the basic purpose of the project; and the financial impact is limited to a transfer within the same budget heading, or a transfer between budget headings involving a variation of 15% or less of the amount originally entered under each relevant heading for eligible costs (not applicable to heading for Administrative costs, Contingency),

Change of address or phone number,

Change of bank account,

Change of key-experts such as coordinator, trainers, etc.,

Increase or decrease in numbers of equipment or unit prices without changes of the budget amount allocated for that budget item,

Model/Brand name change of the equipment as a new technology.

In case of these minor Contract changes,Grant Beneficiarymay apply the amendment without the prior consent of the CFCU. However, Grant Beneficiary should send a notification letter to the CFCU through the SU, within 10 days of making the change by using Standard Form-1. The SU will check the letter through checklist and then send the letter together with checklistIf the Grant Beneficiary has not heard anything from the CFCU within 20 days the minor change is considered as tacitly approved. (The period of 20 days starts from the date when the form is received by the CFCU).

The deadlines for notification are as follows:

Additional documents that have to be attached to notification letters or request for addendaare as follows:

2.1.2Addendum: Major Changes

Major modifications that require a formal Addendum are as follows:

Extension orearly closing of the Contract,

Significant changes in activities that effect the basic purpose of the project as long as the proposed changes do not question the grant award decision and are not contrary to the equal treatment of applicants,

Transfers amongst budget headings; involve a variation of more than 15% of the amount originally entered under each relevant heading for eligible costs,

Adding new item or deducting an existing item from the budget,